Sorry mate, yes its all auto... AI pilot flies at full speed for a few seconds and you get automatically ejected.

2 out of 3 times it damages LB3 out of 5 times it damages LB

I think you're right in that the parachute opens into the rotors and causes the damage... it could be a design feature but I'd imagine you'd move away faster from the chopper when its traveling at full speed rather than slower.